Support

A cookie is a piece of data stored by your browser or device that helps websites like this one recognize return visitors. We use cookies to give you the best experience on BNA.com. Some cookies are also necessary for the technical operation of our website. If you continue browsing, you agree to this site’s use of cookies.

Marketing Services

Bloomberg Next marketing services allow clients to elevate their brands and extend their reach through our established and trusted expertise, enhanced with engaging event production, appealing design, and compelling messaging.

Oct. 21—Denmark's Data Protection Agency published a notification form Oct. 14 for use by
accounting firms subject to new employee whistleblowing rules. The form must be completed
by firms required to establish whistleblowing programs requiring DPA authorization
under legislation passed in June.

In an Oct. 14 statement, the DPA said that the new document (WB1) would replace existing
notification procedures and should be used for both voluntary and statutory whistleblowing
programs. Previously, two forms—FWB1 and FWB2–were used to notify the DPA of mandatory
and voluntary whistleblowing programs in the financial sector.

New Rules

On June 8, amendments to the Act on Auditors and Audit Firms (631/2016)
took effect, requiring accounting firms to introduce mandatory whistleblowing programs.
Under the new rules, covered employers must create a mechanism to allow employees
to report actual and potential violations of the law through channels separate from
the traditional management structure. If necessary, these programs can be outsourced.

The rules, which specifically prohibit negative treatment of employees for whistleblowing,
transpose into Danish law a number of amendments to European Union directives, including
Directive 2014/56/EC requiring EU nations to ensure that adequate arrangements are
in place to protect and encourage whistleblowers in the accounting sector.

Additional Burdens

In an Oct. 18 statement provided to Bloomberg BNA, Norrbom Vinding attorney Jens Harkov
Hansen pointed out that existing whistleblower mechanisms are seldom used and that
the new rules will entail additional burdens for accounting firms.

“If a business does not have a whistleblower scheme already, the new rules will in
my opinion entail a greater documentation burden,” Harkov Hansen said. “Setting up
a whistleblower scheme will in practice require that you develop a whistleblower policy
containing the general elements required by the DPA. Also, the business must file
an application with the DPA and consider whether the set up should be handled internally
or outsourced. Furthermore, businesses must establish procedures with regard to notifying
employees who are subject to whistleblowing.”

When similar requirements for the financial sector were introduced in 2014, Harkov
Hansen said, the DPA established a “fast track” authorization procedure on whistleblower
applications.

“A similar approach is also envisaged in 2017,” he said.

“Noncompliance with the Data Protection Act would normally result in the DPA issuing
an opinion criticizing the matter,” Harkov Hansen said. “In rare situations, noncompliance
could be subject to a fine issued by the police.”

No Obligation

In an Oct. 18 statement, Peter Krogh Olsen, advisor to the industry group Danish Auditors
(FSR), pointed out that the new whistleblowing requirement would only cover breaches
of the Act on Auditors and Audit Firms and the nation's Audit Regulation.

“It is important to emphasize that the duty only extends to the establishment of whistleblowing
procedures and there is no obligation for employees to use them,” Krogh Olsen told
Bloomberg BNA. “The aim is to strengthen the quality of existing internal dialogue,
monitoring and management and allow employees to speak up without fear of reprisal.
However, open consultation will always be preferred.”

“As there are demands for the establishment of whistleblowing systems in the Audit
Act, the proposed Money Laundering Act and perhaps other laws, it is probably simpler
from a procedural point of view that a single form is used,” Krogh Olsen said. “While
the form will seek permission to process information about financial crimes, the legal
amendment only requires firms to implement a system that relates to reports of violations
of the accounting regulations.”

All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to books@bna.com.

Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)

Notify me when updates are available (No standing order will be created).

This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to research@bna.com.

Put me on standing order

Notify me when new releases are available (no standing order will be created)